As a first home buyer or someone with a long-term goal of saving towards a home deposit, understanding the movements of the property market can be crucial. According to ANZ Bank, house prices from 2021 to 2023 are set to increase 30% nationally. What does this mean to you?
One of the main challenges for any homebuyer, but particularly a first homebuyer, is saving for the deposit. If you are saving a deposit at today’s prices, how much extra will you need by the time you reach your savings goal?
Property prices surged in March at their fastest rate in 30 years, according to data released by Core Logic. The median house price in Sydney rose about $50,000 in March – or put another way, a 20% deposit on the same median house price in Sydney increased by $10,000 in just one month. If you have been saving for years, only to find you are $10,000 further away from your goal at the end of the month – the potential cost of waiting is likely quite clear.
If you are saving towards buying a new home, an understanding of the various deposit options, and costs associated are critical to the decision-making process. Many homebuyers want a 20% deposit to avoid lender’s mortgage insurance (LMI), but the opportunity cost of saving for additional months or years may end up being far greater than a one-off lender’s mortgage insurance premium, particularly if you are continuing to pay rent while saving.
Make your first move by contacting Jacques Financial Group to pre-qualify yourself, and learn more about your options.
Get in touch with us by visiting jfgroup.com.au/ or give us a call at 07 3278 0000.
Contributor: April Jane Abrasaldo – Marketing and Admin Assistant, Jacques Financial Group